16/09/2016

Slavkaliy's Potassium Mining and Processing Complex project in Belarus enters active construction phase

Mikhail Gutseriev's Slavkaliy has started the active phase of the project to build a potassium Mining and Processing Complex (MPP) in Belarus. The company started spending the first $300 million tranche provided by the China Development Bank, according to a source in Belarusian banking industry. 

The state-owned China Development Bank had previously approved the opening of a $1.5 billion credit line for building a new potassium MPP in Belarus. The source pointed out that the first tranche has already been transferred by the bank. 

The guarantor for the 15-year, 4% annual interest rate loan is the Government of Belarus. The funding is performed via Belarusbank. The loan agreement provides a 5-year grace period for paying off the basic part of the loan. 

The investment cost of the project is $2 billion. The project is implemented on project finance terms. The BIN Group, an investor of the project, will provide a sum of $500 million. 

The mining and processing complex is designed with an output capacity of 2 million tonnes of potassium chloride per year. Under the plan, its construction should be completed by 2020. The product will be exported by the Belarusian Potash Company.

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